Beijing instructs lenders to suspend financing for refiners hit by US sanctions, tightening access to capital amid geopolitical tensions.
China has ordered domestic banks to pause new loans to refiners under US sanctions, restricting their access to funding. The move targets companies facing restrictions from Washington, potentially disrupting fuel supply chains in Asia’s largest economy.
The directive follows recent US sanctions on Chinese refiners accused of processing Iranian crude. Analysts note this could reduce refining capacity and increase regional oil product prices, though no specific loan volumes were disclosed.
Markets showed limited immediate reaction, with oil futures edging slightly higher on supply concerns. The policy may pressure refiners already grappling with thin margins and regulatory uncertainty.